After a long absence, World Markets began to receive more Venezuelan oil, following the easing by the United States of restrictions on the oil and gas industry in the country located on the northern coast of Latin America.
The US sanctions on Caracas continued for 4 years, during which they caused a sharp decline in the country’s production and exports of oil, which is the main artery on which it relies in its revenues from hard currency, which led it into a dark economic tunnel.
Venezuelan oil production fell from about 2.03 million barrels per day in 2017 to 824 thousand barrels per day in September (2023), knowing that Venezuela has the largest oil reserves in the world estimated at 303 billion barrels, according to estimates.
In this context, the significant easing of US sanctions imposed on the Venezuelan oil industry led to a “marriage of convenience” between global commodity traders and unknown intermediaries who dominated its exports during the sanctions period.
In mid-October (2023), Washington issued a 6-month general license to lift sanctions on Venezuelan oil production and exports until April (2024).
In order to ensure fair presidential elections, this license remains subject to reaching an agreement on elections between the government of Venezuelan President Nicolas Maduro on the one hand and the country’s political opposition on the other.
